BRAMPTON, Ont. — Loblaw Companies Ltd. raised its quarterly dividend as it reported its first-quarter profit rose nearly 40 per cent compared with a year ago.

The grocery and drugstore retailer said Wednesday it will now pay a quarterly dividend of 40.5 cents per share, up from 36.5 cents per share.

The increased payment to shareholders came as the company reported its profit available to common shareholders totalled $437 million or $1.30 per diluted share for the 12-week period ending March 26 compared with $313 million or 90 cents per diluted share a year earlier.

Revenue for the quarter totalled $12.26 billion, up from $11.87 billion in the same quarter last year.

Loblaw chairman and president Galen G. Weston said the company's strong earnings reflect its ability to provide service and value to meet the evolving needs of Canadians.

"We have begun the year with momentum in our core retail businesses, a clear strategic agenda, and continued traction in our growth initiatives," he said in a statement.

Food retail same-store sales rose 2.1 per cent, while drug retail same-store sales grew 5.2 per cent, with pharmacy same-store sales up 6.8 per cent and front store same-store sales up 3.6 per cent.

On an adjusted basis, Loblaw says it earned $1.36 per diluted share, up from an adjusted profit of $1.13 per diluted share a year ago.

This report by The Canadian Press was first published May 4, 2022.

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